Elon Musk's EV Demand Warning Sparks Stock Selloff

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Elon Musk's EV Demand Warning Sparks Stock Selloff
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Elon Musk's warning that high interest rates could sap electric-vehicle demand knocked shares of the sector on Thursday, with some analysts questioning if Tesla can maintain the runaway growth that has for years set it apart from other automakers.

Rivals including Rivian Automotive, Lucid Group and Fisker fell between 3.4% and 4.5%, while legacy automakers such as Ford were down 1.2%.

"It didn't have the same zip. We await Tesla's earnings calls with a sense of excitement and suspense - and they usually deliver. Not Wednesday night," Canaccord Genuity analysts said. Overall, 15 analysts cut their price targets on the stock, pushing the median view to $260, according to LSEG data.

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